“If you don’t find a way to make money while you sleep, you will work until you die.”
~ Warren Buffet
Passive income ideas Hard work definitely pays well. But aren’t there times when you wish that money could come without hard work and sweat? Well, there are ways in which you can benefit from passive earning. It does not mean that there is no hard work or monitoring required. But this is the kind of income that could be generated while you are doing your regular working hours at the office. There, you are supposed to commit the set number of hours, but in passive income generation, you would have to build the initial foundations and let the income-generating idea take its course. It might require hard work from time to time but not in a scheduled working-hours format.
In this blog, we highlight 7 best ways to earn passive income.
1. Affiliate Marketing
If you are a blogger then this one’s for you! You may write articles in a specific field and through your content push a client’s product. If through your blog efforts, your client benefits from getting customers then you may gain rewards. This is performance-oriented and depends on the number of customers that the client benefited from, solely through your blogs. You can also sell the space on your blog site for advertisements.
2. Stock Market and Dividends
Investing in stock is quite a risky way of earning passively but it can yield good repayment if bought and sold at the right time. You have to study the market and ensure that you keep a sharp eye on the fluctuations in the market. If you have a considerable amount of money kept in savings, then a way to make it grow is by investing in the shares of a company. Again, you can be a silent or active shareholder in a company but the more you keep tabs on the goings-on in a company, the more you would be assured of profits at year-end as well as the payment of dividends. Dividends are a sum of money paid to the shareholders at the end of the financial year from the profits earned.
3. Reduction in Debt
Everyone knows that the higher the debt, the higher the interest rates. Try to bring your loans to an end and engage in transactions that let you acquire a smaller debt. In this way, you would not lose out to accumulating interests on loans and debt.
4. Rent Out Property/Car
If you have a room that you are not using, then why not make it earn some money for you by letting it out. Or you can let your room out on Air BNB. In this way, you can earn a decent amount of money and the visitors or tourists who take up your room would only do so for a short period of time. In the same way, you can rent out your car if it’s not in use.
5. 1031 Exchange
If you have a knack for investing in real estate, then you should definitely consider investing in a way that you benefit from the 1031 Exchange when you file your tax returns. When you sell an investment property, you would have to pay capital gains tax. But a means of deferring the capital gains tax is by investing in a similar investment property within the financial year. Post the closure of the deal on the first investment property, there is a 45-day window in which the second property needs to be recognized for 1031 to come into effect. How to do find an investment property on such short notice? Why not try Alumni Alliances! Alumni Alliances is a professional networking community that has members who studied at the same Alma mater. The platform helps in raising capital, providing business solutions, recruitment, mentorship, promote business, buy and sell real estate, job search and mentorship. Alumni Alliances has a Marketplace section where you can take advantage of acquiring premium investment properties. In this way, you can defer your capital gains tax liability.
6. Be a Consultant
You were once a developer but now you are a TL, or a PM or an AD in a Tech company, then your time is much more valuable than you think. Find early stage Startup who are looking for an advisor or Consultant in your domain, you can Help the Startup with 1 hour a day make a contract for Sweat Equity or Cash or Perks.
7. Start a Business and Give the Reins to Someone Else
If you would like to own a business but not get entwined in the day-to-day activities, then you may consider setting the foundation and let someone else build your monument. You can invest in a startup and then get employees who can take the reins from you. Though, you should not really turn a blind eye but keep subtle checks on the activities of the business to ensure that is building up the way you had planned.
These are our 7 ideas of earning passive income. Would you like to add to our list? Please let us know your thoughts through the comments section. Also, please give a quick thumbs up to Alumni Insider via the various social media platforms and don’t forget to bookmark Alumni Insider for more useful articles like this.